Sunday, 27 November 2011


Pantaloon Retail (India) leads gainers in 'A' group

Jet Airways (India), CESC, Gujarat Fluorochemicals and Bank of Baroda are among the other gainers.


Organized retailer Pantaloon Retail (India) surged 16.67% to Rs 234.05 after the Union Cabinet on Thursday, 24 November 2011, cleared a proposal to allow 51% foreign direct investment (FDI) in multi-brand retail and increasing FDI to 100% in single brand retail. The stock topped the gainers in the BSE's 'A' group.

Currently, the country allows 51% FDI in single brand retail and 100% FDI in cash and carry format of the business.

Trade Minister Anand Sharma announced the details of the new FDI policy at a press conference today, 25 November 2011. Sharma said the "India-specific" scheme would create tens of millions of jobs. The proposal sets a minimum investment limit of $100 million per chain -- 50% to go on developing rural infrastructure and establishing a cold-chain system -- and 50% on front-end retailing, or stores. "We also mandated that 30% of entire sourcing by retailers will be from small and medium enterprises," he said. The multi-brand retailers will be permitted only in cities with a population of one million or more. "The step, which we have taken, is an investment in the present and the future of this country," Sharma said.

Shares of Pantaloon Retail had outperformed the market over the past one month until 24 November 2011, rising 11.57% compared with the Sensex's 6.38% decline.

Private air carrier Jet Airways (India) spurted 12.58% to Rs 278.70 on reports Prime Minister Manmohan Singh will hold a meeting with chiefs of all Indian airlines on Saturday (26 November 2011) to discuss the situation being faced by the cash-strapped carriers and other related issues. The stock was second biggest gainer in 'A' group.
Aviation stocks rose across the board today, 25 November 2011, on hopes that the government may allow foreign air carriers to invest in domestic aviation firms. According to recent media reports, the government is likely to allow up to 26% equity participation by foreign airlines in Indian carriers, in a bid to further liberalise the aviation sector in the country and help the industry out of its present troubles.

Power utility CESC, which also operates Spencer's Retail, galloped 8.18% to Rs 274.35 following the Union Cabinet's approval for foreign direct investment in multi-brand retail. The stock was third biggest gainer in 'A' group.

Spencer's Retail is a unit of CESC, the power utilities business of the diversified RPG Group.
Gujarat Fluorochemicals, which makes refrigerant gases, jumped 6.28% to Rs 447. The stock was fourth biggest gainer in 'A' group.

Bank of Baroda rose 5.51% to Rs 724.70. The stock was fifth biggest gainer in 'A' group.

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